The Bitcoin price is trading inside a bullish flag and in the process of retesting the neckline.
Retest of the neckline with a bullish flag.— Mati Greenspan (tweets ≠ financial advice) (@MatiGreenspan) November 28, 2019
Past performance is not an indication of future results but as far as TA goes this setup is extremely 🐂ish. pic.twitter.com/J4WriL8dti
Bitcoin Pattern BreakoutThe Bitcoin price has been trading inside an inverse head and shoulders pattern since September 22. It broke out from it yesterday, and reached the minor resistance area at $7700 before retracing. The next resistance area is found at $8100. Currently, the Bitcoin price is in the process of retesting the neckline. If the price moves upward the entire length of the pattern, it should reach the second resistance area. Looking closer at the price movement, we can see that BTC has moved above all of the 50-, 100- and 200-hour moving averages (MA). The 50- and 100- hour ones have made a bullish cross. It is creating a bull flag, which very often leads to a breakout. Additionally, there is no bearish divergence yet in the RSI in order to diminish the chances of a breakout.
Future MovementLooking at higher time-frames, we can see that BTC is trading inside a descending channel. While the increase since November 25 has been strong, it pales in comparison to the previous downward move. Additionally, very strong resistance is found between $8000-$9000 strengthened by the presence of the 50- and 100-day MAs. Similar resistance levels are given by Scott Melker. The resistance is found by significant Fib levels, further solidifying the difficulty of the price moving above all of them.
To conclude, the Bitcoin price recently broke out from its trading pattern. While the breakout was significant, there are several important resistance levels that need to be broken for the price to begin an uptrend. Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
$BTC 4 Hour— The Wolf Of All Streets (@scottmelker) November 27, 2019
Quite the breakout while I was gone. Just pulled Fibonacci levels for the entire drop from 10K+. The 38.2% retracement up is in confluence with the next key resistance drawn on my chart. Good area to think about taking some profit if we get there (green box). pic.twitter.com/3aMrcsa7bk
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.